168
ANNUAL REPORT 2016
NOTES TOTHE FINANCIAL STATEMENTS
30 JUNE 2016
(Continued)
37. FINANCIAL INSTRUMENTS (continued)
(b)
Financial instruments (continued)
Company
2015
Loans and
receivables
RM’000
Total
RM’000
Financial assets
Other receivables
75,594
75,594
Cash and bank balances
1,110
1,110
76,704
76,704
Other
financial liabilities
RM’000
Total
RM’000
Financial liabilities
Borrowings
12,321
12,321
Other payables
17,295
17,295
29,616
29,616
(c)
Methods and assumptions used to estimate fair value
The fair values of financial assets and financial liabilities are determined as follows:
i.
Financial instruments that are not carried at fair value and whose carrying amounts are a reasonable approximation of fair value
The carrying amounts of financial assets and liabilities, such as trade and other receivables, trade and other payables and
borrowings, are reasonable approximation of fair value, either due to their short-term nature or that they are floating rate
instruments that are re-priced to market interest rates on or near the end of the reporting period.
The carrying amounts of the current position of loans and borrowings are reasonable approximations of fair values due to
insignificant impact of discounting.
ii.
Hire purchase and lease creditors
The fair values of these financial instruments are estimated by discounting expected future cash flows at market incremental
lending rate for similar types of lending, borrowing or leasing arrangements at the end of each reporting period.
iii.
Other investments
The fair values for club memberships are estimated based on references to current available counters party quotation of the
same investment.
iv.
Non-current other receivables and other payables
The fair value of non-current other receivables and other payables are estimated by discounting expected future cash flows at
market incremental lending rate for similar types of lending.
The carrying amounts of the non-current other receivables and other payables are reasonable approximations of their fair
values.
